Youth Future Savings Account Launches in June: Government to Match Up to 12% on Monthly Deposits of 500,000 Won

The "Youth Future Savings Account," which allows young people aged 19 to 34 to freely deposit up to 500,000 won per month with the government matching contributions of up to 12%, will be launched in June.

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On April 23, the Financial Services Commission held a pre-launch review meeting with related agencies, including the Korea Inclusive Finance Agency, and released the detailed features of the Youth Future Savings Account.

Eligibility for the Youth Future Savings Account is limited to young people (ages 19 to 34) as defined by the Framework Act on Youth. For those who have completed mandatory military service, the service period is excluded from age calculation, with up to six years recognized. For example, even if someone is 35 years old, if they served in the military for two years, they will be considered 33 years old and thus eligible. In addition, those who turn 35 between the end of enrollments for the Youth Leap Account (December 2025) and the launch of the Youth Future Savings Account will be exceptionally allowed to join.

This is a three-year, freely deposit savings product, allowing subscribers to deposit up to 500,000 won each month. The government will match contributions to the deposit amount, and interest will accrue on both the principal and the matching contributions. The interest income tax is exempted, and the interest rate will be a fixed three-year rate to be determined later.

Income criteria are as follows: an annual salary of 75 million won or less (63 million won or less in total comprehensive income), or small business owners with annual sales of 300 million won or less. At the same time, household income must not exceed 200% of the median income. Depending on income level and employment type, the government matching contribution will range from 6% to 12% of the amount deposited.

Income and sales criteria will be based on the previous year's data, and some industries may be excluded from the preferential category.

Applications for the Youth Future Savings Account can be made non-face-to-face through participating financial institutions' applications (apps) starting in June. New applicants will be recruited twice a year, in June and December.

After enrollment, there will be no further review of income or sales requirements; however, for employees of small and medium-sized enterprises in the preferential category, a tenure requirement applies. To maintain preferential benefits, such employees must have worked for a total of at least 29 months by one month before maturity, with up to two job changes permitted.

Duplicate enrollment with the Youth Leap Account is not allowed, but switching between products will be permitted during the initial enrollment period in June. In contrast, duplicate enrollment with products from other ministries or local governments, such as the Youth Tomorrow Savings Account, is allowed.

In principle, government matching contributions and tax benefits are restricted in the event of early withdrawal. However, exceptions will be made for unavoidable circumstances such as death, emigration, retirement, business closure, or illness, in which case benefits will be retained.

An official from the Financial Services Commission stated, "The Youth Future Savings Account is a representative asset-building support product aimed at helping young people achieve stable asset formation and economic independence," and added, "We ask financial institutions to actively participate in informing and promoting the product so that young people are fully aware of the benefits and do not miss out."

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